Africa Chrome Fields (AFC) which is operated by the
South African business mogul, Zunaid Moti said on Tuesday the crisis in
Zimbabwe had been compounded by a sharp drop in international chrome prices,
which have wreaked havoc on operators across the continent.

It said 500 workers will lose jobs at the operation,
where the Zimbabwe National Army is believed to be a dormant partner.

Global prices of
ferrochrome, used to make stainless steel, have tumbled this year due to weaker
demand from stainless steel mills in top producer China, according to traders
in Asia and Europe.

Moti said he had been under intense pressure to close
the business due to Zimbabwe’s negative image, but he is set to lose
significant wealth after sinking close to US$250 million in the past five
years.

“Some people would not want to do business with us
because we are in Zimbabwe,” Moti told reporters on Tuesday.

“But the economic meltdown in the southern African
country has also caused a negative impact as well,” he said.

Local media reports that Moti had invested over $200
million in the construction of an aluminothermic plant and six other plants
that were set to generate 10 000 tonnes of ultra-low carbon ferrochrome monthly
within 11 months.

AFC’s move into Kwekwe five years ago was a huge
reprieve to a mining community that had seen a string of big operators
including the giant ZISCO Steel, once Africa’s largest integrated steelworks,
shut down.

Workers’ representative Chaipa Magura told reporters
that AFC management, in a meeting held on September 6, had agreed to stop
further retrenchments and pay outstanding salaries. However, only security
details will be at the premises.

“After consultation between all present, the parties
agreed that management pays outstanding salaries and workers shall be called to
work when need arises with a seven-day notice. As for now, security details are
to remain at the sites,” he said.

In Harare, Newsday on Wednesday quoted a senior
official in the Mines ministry blaming chrome prices for the crisis that has
returned to Zimbabwe’s mines, which have been recovering from a 2011 ban on
ferrochrome exports by government.

“It’s not only ACF that has been affected, but we have
big companies such as Nelson in Gweru that have been hammered by the drop in
chrome price. We currently have China as our major market and they recently
announced the drop in price with over 40 percent,” said the official.

In March last year, ACF Zimbabwe director, Ashruf
Kaka, told delegates at the an investment conference that the firm’s
investments had created 1 200 jobs in the country.

A further 5 500 people had indirectly benefited from
the project, he said, reiterating President Emmerson Mnangagwa’s assurance that
investments were safe in Zimbabwe, which is battling to reform unfriendly
policies.

Kaka said the ambitious mining firm was also scouring
for opportunities in the country’s agricultural sector, which he said presented
great opportunities for growth.

He said AFC had entered the country during the most
difficult time for investors, when the rule of law was “undermined” by policies
of the previous government.

“African Chrome Fields invested in excess of $220
million in Zimbabwe in the last two years. We have already engaged government
for diversifying to gold and diamonds. We are committed to Zimbabwe in every
respect,” said Kaka.

“We have been looking at agriculture with our local
partners, Sakunda. We will be injecting foreign investment into these areas,”
he said, assuring investors that this was the time to invest in the country’s
mining industry.

Chrome has emerged as one of the most promising
minerals.

The Chamber of Mines of Zimbabwe said the chrome
sub-sector comprised of primary and ferrochrome producers, both large scale and
small scale.

Chrome production is dominated by two large scale producers.

The chromium industry contributed 10 percent of
mineral revenue, up from one percent in 2016.

The chamber said the largest chrome producer carried
out greenfield and on-mine exploration activities in 2017 valued at $720 000.

It said the industry injected in excess of $5 million
for capital projects in 2017, and was planning to spend in excess of $20
million in 2018 to increase production to two million tonnes, from 1,6 million
tonnes last year.

“While there were no major mine development projects
in 2017, one of the producers spent on mine development in 2018, valued at $2,5
million,” said the CoMZ.

Kaka told global chief executive officers and fund
managers that the key to successful investment in the country depended on working
with government.

He said Mnangagwa’s government had levelled the
playing field for investors.

“Our success and your success is dependent on your
relationship with government,” he said.

“This is different from the past; this is what makes
the change. Change is taking place and it is irreversible. We are moving
forward, and we are not turning back. Someone had placed the pause button in
the last 20 years. The rule of law was undermined, with large scale
unemployment. In November last 2017, the pause button was released and Zimbabwe
is open for business,” Kaka noted.